Debt Settlement (or Not)
Our debt settlement services starts with determining specifically what accounts to consider settling and which ones to ignore.
Paying off old debt and or settling accounts can and will most likely lower your current credit score. As profane as this may sound, it is one of the most common mistakes we see consumers make.
The credit score is largely influenced by the date of last activity (DLA) of the derogatory credit, and the more current the DLA the more impact it will have on the score. While in most cases, the outstanding balance is making absolutely no difference.. What does this mean? you could pay off an older collection and consequently update the date of last activity (DLA), and lower your credit score substantially!
To complicate the process, (and pardon the contradiction), not all derogatory accounts will effect the score in this way and in some cases will help if settled. So its imperative to know which accounts will help and which will hurt if settled.
A Credit Firm specialist will help you determine which accounts might need to be considered settling and which ones not to.
Factors considered, are your timelines, the accuracy of the debt, if the debt validates or not, The age of the debt,wether a third party collection or original creditor, whether the account is updating dates,your state’s statutes of limitations, and our experience with that particular creditor.
Your credit score and your financial goals is our most important goal. Therefore, if and when it is determined that an account needs to be settled, Credit firm will assist in negotiating the debt and even paying for deletions.
For the reasons above we strongly discourage using any debt settlement or consolidation companies and/or settling accounts on your own, without first contacting Credit Firm inc for your free consultation. A certified credit consultant will guide and show you which accounts to consider settling, if at all
Note: I think its important to notate that after thousands of clients we’ve helped over the years, a very small percentage of accounts do we ever have to settle.